USA Gymnastics eyes two-month exclusivity extension; mediation ongoing

By Caroline Salls

Pittsburgh, Jan. 2 – USA Gymnastics is seeking an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Indiana.

USA Gymnastics is asking the court to extend its exclusive filing period by 60 days through April 3 and the solicitation period through May 29.

According to the motion, USA Gymnastics has in excess of 500 creditors, the majority of them survivors of sexual abuse.

Mediation began in July 2019 with a survivors committee, USA Gymnastics’ insurers and other parties in interest to negotiate a consensual plan of reorganization, the motion said. That mediation is still ongoing.

The organization said it is not sure if insurance coverage adversary proceedings or mediation will be concluded before the current exclusive filing-period expiration date.

As a result, a plan will not be proposed before the current filing period expires.

The Indianapolis-based gymnastics organization filed bankruptcy on Dec. 5, 2018 under Chapter 11 case number 18-09108.

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